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Here's Why Walt Disney (DIS) Gained But Lagged the Market Today

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Walt Disney (DIS - Free Report) closed at $108.81 in the latest trading session, marking a +0.1% move from the prior day. This move lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.28%.

Heading into today, shares of the entertainment company had lost 3.43% over the past month, lagging the Consumer Discretionary sector's loss of 1.39% and the S&P 500's gain of 2.08% in that time.

Investors will be eagerly watching for the performance of Walt Disney in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2025. The company is predicted to post an EPS of $1.45, indicating a 18.85% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $24.7 billion, reflecting a 4.87% rise from the equivalent quarter last year.

DIS's full-year Zacks Consensus Estimates are calling for earnings of $5.41 per share and revenue of $94.94 billion. These results would represent year-over-year changes of +8.85% and +3.91%, respectively.

Any recent changes to analyst estimates for Walt Disney should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Walt Disney boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Walt Disney is holding a Forward P/E ratio of 20.08. This indicates a discount in contrast to its industry's Forward P/E of 21.51.

We can also see that DIS currently has a PEG ratio of 1.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Media Conglomerates industry was having an average PEG ratio of 2.43.

The Media Conglomerates industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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